Show Me How Calculator FIFO and LIFO Costs Under Perpetual Inventory System The

Question

Show Me How Calculator FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year Beginning inventory 42 units at $42 22 units at $61 16 units at $45 29 units at $62 17 units at $48 15 units at $62 Second purchase The firm uses the perpetual inventory system, and there are 9 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of the ending inventory according to LIFO?

Explanation / Answer

a Cost of ending inventory FIFO=9*48= $432 b Cost of ending inventory LIFO=(2*48)+(7*42)= $390

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